Debt conscious Brits opt for staycations

According to a recent report a rising number of people in the UK who are conscious about falling into debt and want to avoid the pitfalls of any further debt are now opting for staycations when it comes to holidays, as they believe that this will be the cheapest option for them in the current climate. Nearly one in four Brits stated in a recent survey that they would be trying to spend less on their holiday this year.

For many people, going abroad on holiday has become increasingly difficult as a result of their financial situations. Many have found that the cost of flights and accommodation have become too much for them to manage on their more limited budgets, and those with families are finding it increasingly difficult to afford to take the whole family on an overseas holiday, as this can run into many hundreds or even thousands of pounds.

The survey was carried out by the Insolvency trade body, R3, which said that of those that were trying to save money on their holidays nearly 60 percent had decided to holiday at home. Those that decided that they still wanted to holiday abroad looked at other ways to save money, with over 70 percent reducing the cost of accommodation, 66 percent choosing cheaper travel, and 60 percent deciding to spend less money whilst they were on their holiday.

An official from the firm said: “People choosing not to have a holiday this year is likely to have grown out of necessity rather than choice. UK households will either simply not have the money to go on holiday as result of cuts to their disposable income or have decided to save their money in preparation for the difficult times ahead. R3’s latest personal debt snapshot revealed only a quarter (25%) of consumers believe their financial situation will improve over the next six months. The money saved from spending less or not having a holiday at all will provide individuals with a financial ‘buffer’ in case they fall on hard times.”

Tags: choice uk, choosing, Brits, holiday, financial situation

Billions accrued in debt during downturn

It has been claimed in a recent report that Brits have managed to accrue billions of pounds in debt during the economic downturn as a result of their shopping addictions. Despite the money worries and concerns over job security that have been experienced by many consumers many have continued indulging in their shopping addiction, and accruing huge debts into the bargain.

The comparison website uSwitch claims that British shoppers have managed to accrue £24 billion worth of debt as a result of their recession shopaholism, which is a term that the website uses to describe those that have built up more than half of their debt through purchases of fashion items.

The breakdown provided by the website showed that there were more women than men that were classed as shopping addicts, with three million men and four million women. However, the average debt accrued was higher amongst men, coming to £3425 compared with £3353 for women. Unsecured debt for women in Britain came to £13 billion and this compared to £10 billion for men.

An official from uSwitch said that although finances have been strained for many people many women had continued to follow their idols and buy a range of expensive fashion items including clothes, handbags, and shoes rather than curbing their spending on fashion shopping in order to save money and ease the financial strain. In some cases those that have accrued debt by shopping for non-essentials during the downturn have said that the recession and economic downturn has been the cause of their spending, as they have shopped to cheer themselves up.

uSwitch officials said: “Despite the financial constraints, women have carried on copying the lifestyles and shopping habits of their idols and ignoring the debt they are racking up in the process.”

Tags: Brits, consumers, debt, finance, credit, uswitch

Should Brits take out loans for weddings?

As most married couples will already know getting married can be an expensive affair if you want all the trimmings, and those that are looking to have the perfect wedding, entertain guests, provide food and entertainment, and round things off with a romantic honeymoon will know that the cost can run into thousands of pounds.

In the current financial climate it can be difficult for couples to save the kind of money that they need for a wedding within a reasonable space of time, particularly if they also want to put a deposit down on a property. It would therefore be natural to think that many couples look into taking out a loan for their special day.

Many couples do turn to personal or wedding loans in order to pay for the big day, and those that do are advised to look for the best rate of interest and the best deal possible, although some people may be put off from starting their married life in debt.

Whilst those getting married may consider a loan for their big day, recent research has shown that attendees are far less likely to take out a loan in order to pay for expenses at the weddings of their loved ones. In fact, Santander carried out research showing that only 1 percent of Brits would actually take out a personal loan to fund the cost of going to the wedding of a loved one.

Emma Roberts from Santander said: “It’s easy to overlook the cost involved in being a wedding guest but the outlay can be significant, both before and during the big day. The last thing people want to be thinking about when preparing for a loved one’s wedding is the expense involved but costs can quickly mount up.”

Tags: wedding, debt, property, loan, Brits, interest, whilst, Marriage

Consumer protection laws could fail to protect travellers

Over the past couple of years many people that have booked flights and holidays have been shocked to hear that the holiday firm or airline that they booked through has gone bust, leaving them wondering whether they are entitled to a refund in addition to ruining their holiday plans. Read more

Tags: travel, Brits, bust, couple, Package holiday, firm goes bust, consumer protection, travel insurance

Save money by ditching branded products

Despite much talk about green shoots and economic recovery for the average household money is still tight, and the global credit crunch and ongoing recession are still hitting hard. Read more

Tags: cheaper brands, green shoots, Brits, cheap goods, branded goods, Sainsbury

Brits try and make ends meet by taking in lodgers

In the ongoing difficult financial climate many households in Britain have been struggling to make ends meet, and this situation has been made worse by the ongoing recession, which has resulted in soaring unemployment levels leaving many households with a vastly reduced income. Read more

Tags: Household, recent report, twelve months, lodgers, Insurance, Mortgages, Brits

Savings accounts suffering due to high inflation

Soaring inflation levels, high food prices, rocketing energy bills, high petrol costs, and increased borrowing costs have been impacting on household finances in the UK for some months now, and a recent report has shown that many people are now having to raid their savings in order to try and keep afloat financially. Officials have stated that with the economy heading downwards and inflation spiralling upwards Brits are left with little choice but to raid their savings. Read more

Tags: consumers took money, Mortgage loan, money, Brits, doom and gloom, quarter, savings, savings accounts

Three way split on interest rates for July

The minutes of the latest Monetary Policy Committee meeting, which was held earlier this month, has shown that there was a three way split on interest rate movement for the month of July, indicating that setting the base rate is becoming an increasing challenge for members of the powerful committee and for the Bank of England. The minutes showed that whilst the majority of members voted to keep the rates on hold at 5%, one voted for the rate to be cut due to the slowing economy and another voted for the base rate to be raised due to soaring inflation levels. Read more

Tags: movement, year, rise, Brits, interest rates, Richest, cut, credit rating

A regular savings habit is “good housekeeping”

Making a regular habit of putting some money aside in a savings account each month is “just good housekeeping”, the chief executive of Moneynet.co.uk has said.

Richard Brown emphasised the importance of saving money, saying that it is a “brilliant habit”.

He pointed out that even a small amount can make a difference.

“We looked at several accounts and if, for example, you save £25 a month with Halifax, that’s £330 with your ten per cent…It gets you in a habit for when you are in a position of earning more money,” he explained.

Although three-quarters (74 per cent) of people recognise the importance of saving, only 50 per cent make an effort to save regularly, according to figures from Nationwide.

Furthermore, nearly 57 per cent of Brits said they are not saving as much as they think they should and just 41 per cent believe they will in a position to save what they think they should in six months’ time.

Tags: regular habit, importance of saving money, savings account, habit, Brits, Abraham Lincoln, finance, Save (baseball)

Some Brits losing money on savings

British taxpayers earning less than 5.4 per cent on their savings are losing money in the current economic climate, a new report warns.

With the retail price index at 4.3 per cent, consumers who are making taxable savings need to earn 5.4 per cent interest at least if they are to break even, a new report from moneysupermarket.com states.

There are currently 487 savings and current accounts which offer less than 5.4 per cent, the report notes.

Kevin Mountford, head of savings at the price comparison site, urges the government to consider ending the tax on savings as it tries to control the cost of living.

“Savers, especially those paying the higher rate of tax, should make sure they take full advantage of their annual £3,600 Isa allowance if they want to inflation proof their finances,” he adds.

Earlier this month, Nationwide Building Society released the results of a survey into saving attitudes which showed that while three-quarters of British consumers feel saving is important, just half of people in the UK do save regularly.

Tags: report notes.kevin mountford, price, Brits, consumers feel saving, british taxpayers, tax

Brits ‘failing to save for old age’

Britons are not making adequate savings for their retirement, an expert has warned.

Donna Bradshaw, a financial planning strategist with IFG Financial Services, a firm of independent financial advisers, stated that people in Britain are simply not saving enough money.

This could be partly down to house prices, she continued.

Britons have developed a “national obsession” with property which has skewed people’s focus from saving for their retirement, Ms Bradshaw asserted.

“Over the years we’ve made pensions unattractive with maybe too much legislation but we need to focus people through an education process,” she added.

However, Britons are making some savings; figures released by the Building Societies Association show that during April, such financial institutions received record savings inflow of £1.8 billion.

Adrian Coles, director-general of the body, remarked that savers are increasingly aware that building societies offer good accounts for savers during such “uncertain economic times”.

Tags: financial planning strategist, GBP, money, Brits, education, enough money, Association, billion.adrian coles

50% of Brits don’t seek financial advice

More than half of people in the UK have never sought professional advice regarding their finances, a new study has revealed.

Research from Zurich has shown that 57 per cent of all Brits and 84 per cent of those aged 18 to 24 years old have never asked for financial advice.

Half of the people surveyed said that one of the reasons they have not approached anyone for advice about their money situation is that they feel is would not be of much value to them as they do not have a large disposable income.

Tony Solomon, director of Life Marketing at Zurich, said: “The sheer number of people walking blind into their financial decision-making presents a disturbing trend in society and an alarming picture for the future.”

Figures from Credit Action have revealed that the households pay an average interest of £3,790 each on their total debt every year.

Tags: Zurich, picture, Human Interest, Brits, Credit Action, solomon, professional advice, GBP

Consumers must curb borrowing, says Osborne

The shadow chancellor George Osborne has said that people need to make an effort to curb their borrowing and take out fewer loans.

Speaking on Channel 4’s ‘News at Noon’, Mr Osborne said that in order to get inflation under control, people must cut their spending.

“People have to be cautious about entering into long-term financial commitments. For example, looking at how much they’re borrowing and watching the pennies basically,” he commented.

This comes just as MGM Advantage has revealed that 55 per cent of Brits are putting their money into savings accounts, although one in five of those in debt still prefer to keep their money at home than in the bank.

According to a recent survey by the company, at the other end of the scale, one in four of those who have more than £1 million in assets also shun savings accounts in favour of stashing their cash at home.

Tags: Brits, Business Finance, shun, finance, cash, borrowing, channel, inflation

We won’t have cheap credit for ‘a number of years to come’

According to a financial analyst, Brits will not be seeing the days of cheap credit “for a number of years to come”.

Darren Cook, a spokesperson for Moneyfacts.co.uk, said that some experts have predicted the Bank of England base rate will increase another three times before the end of the year.

“These uncertainties, paired with the house price adjustments and many households finding themselves in negative equity, [means] lenders are prudently hedging themselves on pricing due to fears of a massive increase in the probability of default,” Mr Cook commented.

In related news, Experian recently advised consumers looking to secure a loan to check their credit report first.

By doing so, consumer education manager at the organisation James Jones said that consumers give themselves a better chance of their loan application being accepted as they can make sure that the information on their report is correct before it is checked by a lender.

Tags: bank of england, personal finance, Darren Cook, Brits, James Jones, loan, England base rate

Brits prefer cards to cash

vNearly a third of British consumers use their credit cards for everyday spending, according to new research.

Findings from Fool.co.uk showed that debit cards account for over a third (37 per cent) of spending while cash accounts for over a quarter (29 per cent).

David Kuo, head of personal finance with Fool.co.uk, said that using plastic is useful but relying on money that cannot be seen is indicative of the recent reliance on credit that is apparent in our culture.

“It is more important than ever to build a decent savings pot because one day when you need to pull a rabbit out of the hat, you could find that all you have is a dead duck in your pocket,” he said.

Further results of the study showed that fewer people carry cash, with nearly half of us withdrawing money once a week or less.

Meanwhile, last week, Chris Tapp from Credit Action said that anyone looking for a new credit card should shop around to make sure that they get the best possible deal they can.

Tags: personal finance, Brits, Electronic commerce, debit, day, Credit Cards, duck, business

‘Disappointing Budget’ does not encourage savers to use Isas

The new Budget from Alistair Darling is “disappointing” as it does not encourage savers to use Individual Savings Accounts (Isas), one financial expert has claimed.

According to Nationwide, the Chancellor could have gone further in promoting the product to consumers by ensuring that they were more flexible, and index-linking them to inflation.

A spokesman for the company said: “Additionally, we would have liked to have seen the Chancellor introduce a withdrawal buffer that allows savers to make withdrawals and replenish their Isa within the same tax year, as this would particularly help people on lower incomes.”

The firm said it hoped that Mr Darling would do more to re-evaluate the Isa system in future budgets to try and encourage consumers to make full use of their Isa allowance and embrace the tax-efficient benefits they bring.

Meanwhile, according to the Daily Telegraph, recent research from Lloyds TSB revealed millions of savers are missing out on tax-free interest as nine in ten Brits fail to make the most of their individual Isa allowances.

Tags: nationwide, incomes, Telegraph, Brits, Product Recall

Northern consumers spend more

People in London spend less on nights out and entertainment than consumers in the north and Scotland, according to a new survey.

Following research that British singletons have a higher disposable monthly income than those in a relationship, David Kuo, head of personal finance at Fool.co.uk, said that Londoners spend slightly less money than their northern counterparts when it comes to going out and socialising,

“The Scots spend about around £74 a month, people in the north spend £72 a month and Londoners only spend around £61 a month,” he stated.

However, the research from Fool.co.uk revealed that while Northerners are more inclined to spend money on going out, Londoners spend more on nights in and dvds.

The research also showed that the average single Brit is £255.42 per month better off than those in a relationship.

Single Brits spends £281 a month on rent and bills, compared with the £500 paid out by someone in a relationship, meaning the singletons make a massive £2,600 saving per year on rent alone.

Tags: entertainment, Brits, head, northern counterparts, massive £2

Homeowners ‘do not have adequate insurance’

Up to one in five of Brits have no home insurance while a quarter do not know what their policy covers, according to a recent poll.

Findings from the Nationwide showed that many respondents are at the risk of being underinsured with 14 per cent of people admit to not have any contents insurance.

This is despite the average homeowner having home contents worth between £14,000 and £21,000.

Nationwide’s insurance director, Robin Bailey, said: “It is surprising that so many people are prepared to take such a gamble on their homes and personal belongings when you consider how much time and money we all invest in our homes.

He added that as consumers never know “what is round the corner”, they would benefit from being prepared by having adequate insurance.

However, the survey also showed that those aged 45 and over are more likely to have both buildings and contents insurance and claim to possess full knowledge of what is covered.

Meanwhile increasing numbers of homes are at risk from dangerous weather, Abbey Home Insurance has stated.

Tags: contents insurance, covered.Meanwhile increasing numbers, Insurance, Windloss Inspection, quarter, Financial services, Brits, home contents

Consumers’ impulse buys costs them

A love of impulse buying helped by credit cards and the internet is leaving Brits financially out of pocket, according to new research.

Findings from swiftcover.com show that 91 per cent of respondents made a regrettable impulse purchase last year with a further 60 per cent admitting to spending in excess of £100 last year on spontaneous buying.

A fifth of consumers blamed credit cards for their impulse spending while a further 26 per cent said the convenience of online shopping made them susceptible to

Tina Shortle from swiftcover.com. said: “Whether it’s a pair of killer heels, or the latest ‘must-have’ gadget, it seems that we’re addicted to spending now, paying later.”

He added: “But that means that we’ve also dropped our guard when it comes to ’sensible’ habits like shopping around and as a result we are getting stung by shops’ returns policies.”

The survey showed that seven out of ten people admitted that they do not bother to read returns policies before buying.

Meanwhile, Which? has reported that shoppers are opting for cheaper supermarkets as Asda and Lidl entered the top ten of stores used by consumers in a recent survey.

Tags: respondents, online shopping, consumer, love, killer heels, pocket, Technology Internet, Brits

Brits plan to spend £13bn on home green improvements

Homeowners in Britain are planning to spend £13 billion on improvements to their properties claims new research.

The findings from the Co-operative Bank have shown that a number of consumers have already begun to instigate general ‘green’ changes.

Up to 66 per cent of people are recycling, 60 per cent have switched to energy saving light bulbs and another 40 per cent have installed loft and cavity wall insulation.

John Barker, head of mortgages at the Co-operative Bank said: “This research clearly shows that people are really starting to sit up and take notice of green issues in relation to their homes.”

“Houses are one of the largest sources of carbon dioxide emissions in the UK and taking steps to improve the environmental impact of homes is something that we strongly believe should be encouraged,” he added.

According to the research the ‘greenest’ region is Wales, where 75 per cent of people have taken steps to make their homes greener over the past year.

In last November the Co-operative Bank launched a mortgage package for those customers looking to reduce their carbon footprint.

Tags: GBP, november, last november, Cavity wall insulation, Brits, homes greener

Brits choose ’stability’ when renewing mortgages

Millions of Brits would opt to fix their mortgage rate for five or more years if they needed to renew it, it has emerged.

Recent research by Abbey Mortgages has revealed that one in three (5.1 million) homeowners would choose a fixed rate of interest, with the need to know monthly outgoings the main reason for doing so.

The number of people wanting to opt for a five year fixed rate was greater even that the once favourite two-year fixes.

Head of mortgages at Abbey, Nici Audhlam-Gardiner, commented: “You never know what’s going to happen in the future, but at least if you’ve committed to a long term fixed deal, you know where you are going to stand with your repayments.

“Borrowers need to be sure however that the deal they take out is right for them and that they understand the different types of mortgages available before signing up to anything.”

Meanwhile, the number of homeowners choosing tracker mortgages was up to 12 per cent, although around eight per cent of respondents said they prefer to fix as they do not fully understand how tracker mortgages work.

Tags: borrowers, 1 million, Business Finance, need, deal, Gardiner

‘Concerned’ Brits struggle with debts

Many Brits are struggling to keep their debts under control as over one in ten reveal they are “very concerned” about their financial situation.

This figure (11 per cent) has gone up from seven per cent in just three months, with around 2.7 million people saying they have sunk further into debt by over ten per cent, according to MoneyExpert.

Sean Gardner, chief executive of the company, commented: “With the festive season just around the corner, we can only predict that the number of people worried about their ability to deal with their debts is likely to increase.

“Christmas is a massively expensive time of year so you can’t help but worry that many more are likely to become increasingly concerned about how they’ll cope.”

However, he said, there are signs that people are beginning to get their borrowing levels down, with 27 per cent of Brits successfully cutting their debts over the past three months.

Mr Gardner added that consumers must, above all, work out a repayment plan and avoid burying their heads in the sand when confronted with debt.

Tags: Business Finance, borrowing, work, situation, Sean Gardner, sand, repayment plan, Brits

Wrong insurance costs Brits £750 million

Having the wrong insurance cost Britons £750 million in the last year, according to new research.

The figure is the sum total of the value of claims people who had lost cars, holidays and other possessions which they thought were insured, but which turned out not to be covered by their policies.

One million people had claims rejected, with an average value of £736, the research from Tesco Personal Finance found.

The company also found that 55 per cent of insurance buyers only skim read the terms of their policies.

Peter Dingle, managing director at TescoCompare.com, said: “It is worrying that so many of us have made mistakes in the past twelve months. With the pace of modern life, many perhaps simply do not have the time to make sure they understand what they are buying.”

Mr Dingle’s comments are borne out by other findings in the research.

Four and a half million shoppers were found to have bought an item of clothing in the last 12 months only to find out later that it was dry-clean only.

Tags: britons, possessions, cost, Brits, research, 12 months, life

Brits’ confusion over interest rates ‘worrying’

It is “worrying” how few people in the UK fully comprehend the impact of rising interest on their mortgage repayments, said CreditExpert.

According the credit report monitoring service’s Personal Credit Index survey, as many as 70 per cent of people asked, were not clear of the implications of the effect of interest on an example given to them and gave the wrong answer.

Respondents were asked to estimate the effect of a 0.5 per cent interest rise on monthly repayments for an interest-only mortgage of £100,000. Almost a fifth (19 per cent) guessed at £80 while 17 per cent estimated it at no more than £10. In fact, the correct answer was a £40 increase.

Furthermore, around eight in every ten mortgage holders were unaware of the meaning of annual percentage rate (APR).

Jim Hodgkins, managing director at CreditExpert.co.uk, said: “Although the current Personal Credit Index shows that people generally are more confident than in the last quarter, the lack of understanding of key terms and the effect of interest rate changes is worrying.

“It’s important for people to be familiar with standard financial terms and stay on top of changes that affect their personal finances so they can make the best possible decisions and choices.”

Tags: monthly repayments, top, mortgage repayments, Credit Index survey, Jim Hodgkins, council of mortgage lenders, wrong answer, Brits

Brits will invest thousands to feel safe

Homeowners in the UK are prepared to spend nearly £10,000 on securing their homes.

Recent research by Alliance and Leicester Personal Loans, has found that in order to feel safe Britons will spend as much as £8,500 pounds on security measures.

A third of respondents said they would like security patrols, while 52 per cent said they would spend money on CCTV monitoring points of entry.

Furthermore, 53 per cent were prepared to pay out for motion sensor security lights, while 20 per cent they would spend on bars over doors and windows.

Richard Al-Dabbagh, senior personal loans manager at Alliance, said: “Although CCTV and alarm systems may not stop a house being targeted, they both present a very visible deterrent, even to the experienced and expert burglar.

“Burglary is an opportunist crime for the most part. A burglar selects their target because it offers the best opportunity to carry out their crime undetected and with fewest obstacles.”

Last week, the Association of British Insurers said that improving security measures would help keep insurance premiums for homes to a minimum.

Tags: security measures, National security, homes.Recent research, expert, alarm, Brits, burglar selects, security patrols

New term sees Brits sort out finances

For school children, September and the new school term means a fresh start, but it seems that at this time of year, adults too are following suit and turning over a new leaf.

Research from Lloyds TSB shows that in the autumn, some 56 per cent of adults vow to get fit, 34 per cent vow to spend more time with loved ones and 36 per cent promise to sort out their finances.

Over a quarter (28 per cent) of those who said they wanted to get their financial affairs in order planned to move their current account and over a third (35 per cent) are looking for an account that will offer higher credit interest rate, with changing credit cards and finding more competitive insurance also a priority.

A positive three-fifths think they will stick with their new commitment to better financial management.

Ian Larkin, managing director of consumer banking for Lloyds TSB, said: “Time and again, people tell us that sorting out their finances is a top priority, but many overlook the difference that a competitive current account can make to their finances.”

Some banks, including Lloyds, have staff dedicated to making switching accounts an easy and smooth process, so that new term financial resolutions are painless as well as beneficial.

Tags: Brits, year, banks, competitive insurance, leaf, higher credit, Credit card

Londoners most keen on living abroad

People living in London are the most likely in Britain to take out a mortgage on a foreign property.

New research by Bank of Scotland International (BSI) shows that eight per cent of Londoners already own a home abroad.

In addition, a further 52 per cent have considered making a move overseas, putting Londoners well above the British averages of four per cent and 42 per cent respectively.

Those in the capital who already own a foreign property are closely followed by the South East, where seven per cent of people are already on the foreign property market.

The most popular foreign destination to set up home for Brits is Australia, with ten per cent saying that they would consider upping sticks and moving down under.

France is the top European destination and is closely followed by Spain.

“Londoners certainly are the most active when it comes to moving abroad or buying a home abroad,” commented Tony Wilcox, managing director at BSI.

“When looking to live temporarily or permanently abroad it is important to have the right products and services in place.”

Moving abroad can have many financial benefits for Brits who have had enough of the high property prices in this country, however, careful consideration and planning must go into the move for it to be a success.

Tags: right products, BSI, financial benefits, buying a home, europe, tony wilcox

Holy matrimony – cost of attending wedding revealed

As the British wedding season gets into full swing, the financial implications of attending someone else’s ceremony have been exposed.

Experian has published research which shows that the average British wedding guest will fork out around £386 to go to a wedding.

Rather worryingly, this leads to six per cent of us going into debt and many people will take out a credit card or increase their bank overdraft in order to attend.

Bizarrely, many of us are prepared to put ourselves at a financial disadvantage to go to a wedding that we do not even wish to be at, with 45 per cent of Brits saying that they have been pressured into going.

Much of the money, around £130, is spent before the big day has even arrived, with hen nights and stag dos taking their toll on our wallets.

“Weddings are a time to celebrate but it’s clear that people are increasing their financial stress and spending money they don’t have simply in order to be there,” said Jim Hodgkins, managing director of CreditExpert.

“The cost of getting married and attending other people’s weddings is often underestimated, but it’s a significant outlay that often hits hardest those who are first time property buyers or those still burdened by student debt.

“As a result, attending lots of weddings in a short space of time can mean your credit rating is adversely affected,” he added.

The research found that the stag night and hen do are the most expensive parts for a wedding guest, while the wedding gift was ranked second.

Buying clothes for the occasion followed closely, while travel, accommodation and drink also have an effect.

Tags: GBP, Relationships, significant outlay, travel accommodation, debt, short space, Brits, wedding season

Brits expect rates rise

The majority of Brits are expecting interest rates to rise again this year.

Lloyds TSB has published its Consumer barometer in which it revealed that most of us (77 per cent) are fully expecting another increase.

This is bad news for those with a mortgage, loan or credit card, however, the fact that most borrowers are expecting a rise may help them to be properly prepared.

Confidence in job prospects and job security fell during May, with more people believing that their position is vulnerable compared to the month previous.

“Last month’s interest rate rise did little to convince consumers that rates had reached a peak,” said Trevor Williams, chief economist at Lloyds TSB Corporate Markets.

“In line with the prevailing opinion of the financial markets, consumers believe rates will increase further this year.

“We’re just beginning to see the impact of May’s rate rise on consumers with sentiment on job security and prices starting to cool.

“Even so, there is still some way to go before the Bank of England will be reassured – they have emphasised that for inflation to stay low, inflation expectations must be anchored at low levels,” he added.

Borrowers concerned that interest rates are likely to increase in the coming months should try to account for a rise in repayments when budgeting.

Tags: interest rate rise, Brits expect rates, cent, year, majority, lloyds tsb, Financial services, Brits

Homeowners losing £40m on insurance

Homeowners who fail to shop around for home and life insurance are losing out on a combined £40 million per year.

The figure has been put forward by the Post Office which says many Brits simply get their insurance from their mortgage lender due to convenience.

Around eight million people in the UK opt to buy their insurance from the same firm that gives them their mortgage, with one in ten people incorrectly believing that it was compulsory that they do so.

A further one in 20 were convinced that their loan would be at risk if they did not also buy insurance, while 63 per cent chose their mortgage provider’s insurance because it was convenient to do so.

“Convenient doesn’t always mean cheap,” said head of insurance at the Post Office Phil Ashkuri. “Many homeowners don’t realise taking out buildings and contents insurance with their mortgage lender is generally not the best value deal. And it’s not compulsory for securing their mortgage.

“Our advice is shop around as there are better home insurance deals out there from standalone providers.”

The majority of buyers will be able to find a better deal by getting their insurance from a different source to their mortgage, loan or credit card provider.

Tags: Agents and Marketers, shop, Brits, figure, Types of insurance, better home insurance, homeowners, United States

Brits still love cheques

Although they are seemingly becoming a thing of the past, cheques remain extremely popular among Britons.

New research, carried out by Which? magazine, shows that 57 per cent of people over the age of 16 find them “really useful” for carrying out banking.

In addition, cheques are still widely used, with 55 per cent saying that they had used one as a form of payment in the last month.

The findings come as firms such as Boots and Shell are announcing that they plan to phase out the use of cheques.

Although the research may cause these stores to have a bit of a rethink about when to ban cheques, Which? found that they are correct to note that the method of payment is slowly dying out.

Of the 1,003 people survey, 72 per cent said that they use cheques less now than they did five years ago, while almost 25 per cent found it “annoying” to receive one.

Boots will no longer accept cheques in its stores from this month, while Shell has already phased them out at all of its 586 UK forecourts.

Tags: shows, payment, bit, Credit card, shell

Homebuyers cutting corners

A large number of homebuyers in the UK are cutting corners financially as house prices rise and this could lead to big problems in the future.

Research by AA Legal Services highlights an alarming trend of buyers failing to ensure that their new home has been properly checked before signing up to buy it.

The average home in the UK currently costs around £185,000 and Brits owe a combined £340 billion in mortgage repayments.

It is this debt, says the AA, that is causing new homebuyers to run the risk of cutting corners.

“With home buyers stretching themselves to the financial limits to afford their home, many are cutting back on the relatively low costs of basic legal and social inspections,” said James Molloy from the firm.

“New home owners who do not carry out basic checks, face discovering too late that their dream home could actually be a financial time bomb.”

According to AA Legal Services, only 28 per cent of homeowners questioned had commissioned a structural survey on their property or looked at the flood risk.

In addition, only 14 per cent had tried to get an independent conveyancing service, while just 21 per cent looked for an insurance quote and 29 per cent considered council tax costs.

“I’m very worried that so few take steps to protect their investment and ensure that their interests are represented,” added Mr Molloy.

Tags: future research, United Kingdom, addition, big problems, aa

Brits ‘don’t haggle’ over new cars

British car buyers are wasting money on their personal loans by not haggling over the price of the car they are buying, according to a new report.

Research by Sainsbury’s Bank suggests that up to 386,000 people will not haggle on the price of their brand new car between March and August this year, despite allegedly being able to save up to £1,500.

The bank, which claims that around 16 per cent of people looking to buy a new car will use a personal loan as their main source of finance, has found that this overspend could add up to £611 million nationwide.

Steven Baillie, loans manager at Sainsbury’s Bank, said: “Once you have decided which new car you want, you then need to be prepared to haggle over the price you pay and if you are financing the purchase with a loan, you also need to make sure that you shop around to find the right option for you.”

Drivers are also encouraged to shop around for their personal loan in order to get the cheapest deal, meaning they can save money on the cash they borrow to pay for their new motor.

Tags: Brits, home, Insurance, Bargaining, brand, Sainsbury's Bank, bank

64% of Brits won’t reclaim bank charges

Despite headlines that Brits can reclaim bank charges, many are failing to do so for fear for being rejected by their bank or having their accounts closed.

Many consumer struggle with banking charges which mean a penalty is put upon on those who spend more than their overdraft limit and many people are now due a refund.

But a survey by Which? shows that up to 64 per cent of Britons are delaying approaching their banks.

Over one-fifth told the consumer group that they had not written to their bank or asked them about the fees because they “fear how their bank would react”.

Emma Bandey, Which? personal finance campaigner, said: “It can’t be good for the banks’ image that so many people found them less than helpful.”

Recent figures show that 85 per cent of those who have launched a claim against their banks have been successful in reclaiming at least a part of their fee.

Those banks which are most feared in terms of reprisals such as closing bank accounts are said to be Nationwide, HSBC, Alliance & Leciester and Abbey.

Tags: Brits won't reclaim, fee.Those banks, Bank charge, headlines, Brits, helpful."Recent figures, bank charges, image

Third of Brits move home to improve lifestyle

Around a third of us have moved house in the last five years to seek a better quality of life.

That is according to research by Abbey, which says around 18.8 million of us were prepared to get a new mortgage to ensure we moved away from negative factors such as crime and unruly neighbours.

According to the research, almost 5.3 million people decided to move because crime levels in their previous area were too high.

In addition, 4.5 million people revealed that they moved to get away from irritating or annoying neighbours, while 2.6 million people wanted to live within a better school catchment area.

“When buying a home people have more to consider than just the building itself,” said Nici Audhlam Gardiner from Abbey.

“People spend a lot of time looking not only for what they want in a home, but for what they need in the area they live in, and more often than not, these requirements are for the greater good of the family.

“Crime and family safety is clearly a top priority for most buyers, but moving to get the right school for your children or to avoid unruly neighbours also have an important impact on the selection of a home,” she added.

The survey found that people in Wales are the most likely to move home in search of a better quality of life, with the majority of people moving to the south-west.

Tags: quality of life, crime, school, Wales, Brits, home, life, previous area